SEHK:375

Stock Analysis Report

Executive Summary

YGM Trading Limited, an investment holding company, engages in the manufacture, wholesale, and retail of garments and accessories in the People’s Republic of China, Taiwan, the United Kingdom, and internationally.

Snowflake

Fundamentals

Adequate balance sheet second-rate dividend payer.

Share Price & News

How has YGM Trading's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 375's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-8.5%

375

-4.5%

HK Luxury

-4.2%

HK Market


1 Year Return

-37.6%

375

17.1%

HK Luxury

-2.6%

HK Market

Return vs Industry: 375 underperformed the Hong Kong Luxury industry which returned 17.1% over the past year.

Return vs Market: 375 underperformed the Hong Kong Market which returned -2.6% over the past year.


Shareholder returns

375IndustryMarket
7 Day-8.5%-4.5%-4.2%
30 Day-26.1%-0.5%-0.9%
90 Day-40.1%7.9%1.7%
1 Year-33.8%-37.6%21.3%17.1%0.9%-2.6%
3 Year6.4%-38.2%46.0%28.7%19.6%7.6%
5 Year-48.8%-72.0%42.0%14.3%18.6%-1.0%

Price Volatility Vs. Market

How volatile is YGM Trading's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is YGM Trading undervalued compared to its fair value and its price relative to the market?

8.07x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 375 (HK$4.39) is trading above our estimate of fair value (HK$2.69)

Significantly Below Fair Value: 375 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 375 is good value based on its PE Ratio (8.1x) compared to the Luxury industry average (8.9x).

PE vs Market: 375 is good value based on its PE Ratio (8.1x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 375's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 375 is overvalued based on its PB Ratio (1.1x) compared to the HK Luxury industry average (0.9x).


Next Steps

Future Growth

How is YGM Trading forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

17.4%

Forecasted Consumer Durables industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as YGM Trading has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has YGM Trading performed over the past 5 years?

-7.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 375 has large one-off items impacting its financial results.

Growing Profit Margin: 375's current net profit margins (25%) are lower than last year (26.2%).


Past Earnings Growth Analysis

Earnings Trend: 375's earnings have declined by -7.3% per year over the past 5 years.

Accelerating Growth: 375's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 375 had negative earnings growth (-40.3%) over the past year, making it difficult to compare to the Luxury industry average (-2.8%).


Return on Equity

High ROE: 375's Return on Equity (12.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is YGM Trading's financial position?


Financial Position Analysis

Short Term Liabilities: 375's short term assets (HK$470.5M) exceeds its short term liabilities (HK$213.9M)

Long Term Liabilities: 375's short term assets (HK$470.5M) exceeds its long term liabilities (1.5M)


Debt to Equity History and Analysis

Debt Level: 375's debt to equity ratio (1%) is considered satisfactory.

Reducing Debt: 375's debt to equity ratio has reduced from 1.1% to 1% over the past 5 years.

Debt Coverage: 375's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if 375's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: 375 has a high level of physical assets or inventory.

Debt Coverage by Assets: 375's debt is covered by short term assets (assets are 69.4x debt).


Next Steps

Dividend

What is YGM Trading's current dividend yield, its reliability and sustainability?

9.11%

Current Dividend Yield


Dividend Yield vs Market

company9.1%marketbottom25%2.3%markettop25%6.4%industryaverage2.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 375's dividend (9.11%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.27%).

High Dividend: 375's dividend (9.11%) is in the top 25% of dividend payers in the Hong Kong market (6.38%)


Stability and Growth of Payments

Stable Dividend: 375's dividend payments have been volatile in the past 10 years.

Growing Dividend: 375's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (73.6%), 375's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of YGM Trading's salary, the management and board of directors tenure and is there insider trading?

4.2yrs

Average management tenure


CEO

William Fu (57yo)

4.2yrs

Tenure

HK$2,493,000

Compensation

Mr. Sing Yam Fu, also known as William, has been an Executive Director of YGM Trading Ltd. since 1995. Mr. Fu has been the Chief Executive Officer of YGM Trading Ltd. since September 23, 2015 and served as ...


CEO Compensation Analysis

Compensation vs Market: William's total compensation ($USD318.54K) is above average for companies of similar size in the Hong Kong market ($USD216.22K).

Compensation vs Earnings: William's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.2yrs

Average Tenure

64.5yo

Average Age

Experienced Management: 375's management team is considered experienced (4.2 years average tenure).


Board Age and Tenure

11.4yrs

Average Tenure

68yo

Average Age

Experienced Board: 375's board of directors are seasoned and experienced ( 11.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Peter Chan (74yo)

    Executive Director

    • Tenure: 0yrs
    • Compensation: HK$60.00k
  • Wing Kee Chan (72yo)

    Executive Director

    • Tenure: 32.8yrs
    • Compensation: HK$60.00k
  • Shirley Chan (68yo)

    Vice Chairman

    • Tenure: 4.2yrs
    • Compensation: HK$2.24m
  • Wing To Chan (68yo)

    Executive Director

    • Tenure: 32.8yrs
    • Compensation: HK$60.00k
  • Samuel Chan (71yo)

    Chairman of the Board

    • Tenure: 4.2yrs
    • Compensation: HK$1.31m
  • William Fu (57yo)

    CEO & Executive Director

    • Tenure: 4.2yrs
    • Compensation: HK$2.49m
  • Kwai Yung Ngai (61yo)

    Managing Director of Hong Kong Security Printing Ltd

    • Tenure: 21.8yrs
  • Andrew Chan (41yo)

    MD & Executive Director

    • Tenure: 5.3yrs
    • Compensation: HK$1.71m
  • Hendrik H. Penndorf (55yo)

    CEO of Societe Guy Laroche & Director of Gl Europa S.A.

    • Tenure: 0yrs
  • Ying Tung Kwok (56yo)

    Company Secretary & Financial Controller

    • Tenure: 1.7yrs

Board Members

  • Peter Chan (74yo)

    Executive Director

    • Tenure: 0yrs
    • Compensation: HK$60.00k
  • Wing Kee Chan (72yo)

    Executive Director

    • Tenure: 32.8yrs
    • Compensation: HK$60.00k
  • Shirley Chan (68yo)

    Vice Chairman

    • Tenure: 4.2yrs
    • Compensation: HK$2.24m
  • Wing To Chan (68yo)

    Executive Director

    • Tenure: 32.8yrs
    • Compensation: HK$60.00k
  • Samuel Chan (71yo)

    Chairman of the Board

    • Tenure: 4.2yrs
    • Compensation: HK$1.31m
  • William Fu (57yo)

    CEO & Executive Director

    • Tenure: 4.2yrs
    • Compensation: HK$2.49m
  • Keping Lin (80yo)

    Independent Non-Executive Director

    • Tenure: 15.8yrs
    • Compensation: HK$150.00k
  • Andrew Chan (41yo)

    MD & Executive Director

    • Tenure: 5.3yrs
    • Compensation: HK$1.71m
  • Hendrik H. Penndorf (55yo)

    CEO of Societe Guy Laroche & Director of Gl Europa S.A.

    • Tenure: 0yrs
  • Ting Ki Choi (64yo)

    Independent Non-Executive Director

    • Tenure: 6.9yrs
    • Compensation: HK$150.00k

Company Information

YGM Trading Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: YGM Trading Limited
  • Ticker: 375
  • Exchange: SEHK
  • Founded: 1949
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: HK$728.143m
  • Shares outstanding: 165.86m
  • Website: https://www.ygmtrading.com

Number of Employees


Location

  • YGM Trading Limited
  • 22 Tai Yau Street
  • San Po Kong
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
375SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992

Biography

YGM Trading Limited, an investment holding company, engages in the manufacture, wholesale, and retail of garments and accessories in the People’s Republic of China, Taiwan, the United Kingdom, and internat ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/17 12:34
End of Day Share Price2019/11/15 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.